When a Compensating Control Exists, the Absence of a Key

question 30

Multiple Choice

When a compensating control exists, the absence of a key control

• A) is no longer a concern because there is no longer a significant deficiency or material weakness.
• B) is still a major concern to the auditor.
• C) could cause a material loss, so it must be tested using substantive procedures.
• D) is magnified and must be removed from the sampling process and examined in its entirety.

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Definitions:

Community

A group of interacting living organisms sharing a populated environment, often considered within the context of ecological and biological studies.

Atmospheric Reservoir

refers to the part of the Earth's atmosphere that acts as a storage place for gases and plays a key role in the global climate.

Carbon Cycle

The series of processes by which carbon compounds are interconverted in the environment, chiefly involving the incorporation of carbon dioxide into living tissue by photosynthesis and its return to the atmosphere through respiration, the decay of dead organisms, and the burning of fossil fuels.

Decomposer

Organism, usually a bacterium or fungus, that breaks down organic matter into inorganic nutrients that can be recycled in the environment.